We invite you to read the material prepared by AXI IMMO experts Wojciech Warys and Anna Peczela on the potential of the warehouse market in Lublin or listen to the speech of one of them (listen to the podcast in Polish).
Lublin is a city with longstanding food processing traditions. Now, following multiple investments into the region’s road infrastructure, it is also becoming an important warehouse and logistics location in eastern Poland. The market’s significance is increasing year by year, which is confirmed by the rising number of new development schemes and an inflow of occupiers that choose Lublin as their distribution base. Where and which director will warehouse sector develop checked AXI IMMO experts.
“Lublin is becoming more and more popular among investors, developers and occupiers. The majority of modern warehouse schemes are located in the eastern part of the city, in close proximity to the city ring road. The region is gaining in importance as a logistics and industrial location thanks to improving road infrastructure, including the S12 and S17 expressways (Warsaw-Lublin), combined with relatively low wages and good access to workers. In addition, it is worth noting that all existing warehouse schemes are within the city administrative borders, which ensures good access to public transport for employees” – comments Wojciech Waryś, Associate Director Industrial & Logistic at AXI IMMO.
Total modern warehouse stock in Lublin amounted to over 190k sqm as at the end of Q2 2020, which marks a 37% y/y increase. Although only 6,700 sqm was delivered to the market in the first half of 2020, almost 55k sqm was under construction as at the end of June 2020. What is interesting, nearly 63% of space is being built on a speculative basis, without pre-let agreements in place. Developers have been confident about the potential of Lublin, which is reflected in the rising number of new schemes. Developers Panattoni, MLP, 7R, GLP as well as local players are active on the market.
A total of 12k sqm was leased on the Lublin market in the first half of the year. Moreover, further large leasing agreements are at an advanced stage in the negotiation process and are expected to close in Q3 and Q4.
“The Lublin market is diverse, with a presence of local businesses as well as large national and international players who use it to service the eastern part of Poland and eastern European markets. Logistics firms, distributors, food processing companies and firms from the automotive industry are all active on the market. We expect Lublin to continue to grow and become an increasingly important warehouse market within Poland, with an addition of further logistics and industrial schemes” – summaries Anna Peczela, Senior Consultant Industrial & Logistic at AXI IMMO.